Vancouver-based medical clinic operator, Well Health Technologies Corp (TSE: WELL) indicated its year end financial statements and management discussion would be delayed because one of the company’s subsidiaries, Circle Medical Technologies, is being investigated for its billing practices.
Well Health said that it needs more time to analyze the information and determine how the investigation will impact Circle’s financial statements and, in turn, its own financial situation. The company expects to file its annual financial statement by April 15.
Meanwhile, the company said earlier this week that it was still going forward with its plan to pick up a controlling interest in Healwell AI (TSE: AIDX) (OTCMKTS: HWAIF) (FRA: 6H90). Furthermore, the company will complete the acquisition at the same time Healwell AI picks up New Zealand-based Orion Health.
Well Health plans to acquire enough Class A and Class B shares in Healwell AI to own approximately 29 per cent of the company by market cap.
By holding 60 per cent of Healwell AI’s voting shares, Well Health would gain control of the company. This stake is also expected to add USD$160 million in revenue for Well Health over the next 12 months. Well Health and Healwell AI have been long-time partners.
Furthermore, Well Health led a consortium that secured USD$15.3 million in funding for a USD$44-million project to develop AI technology designed to help doctors save time.
Healwell AI also participated in the consortium. Last summer, Digital: Canada’s Global Innovation Cluster, formerly known as Digital Technology Supercluster, provided the funding. The Vancouver-based organization distributes federal government capital.
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Well Health operates 175 medical clinics across Canada
Well Health recorded more than 5.7 million patient visits in its most recent fiscal year, marking a record high. Patient visits increased by 32 per cent year-over-year, with organic patient visits rising 30 per cent, the company announced today.
“Our Canadian clinics, underpinned by our technology-enabled care model, continues to lead the way in driving strong organic growth,” said Hamed Shabazi, Well Health CEO and founder.
The company operates a two-headed business model, which is why it plans to split into two entities. Each entity will trade separately on the Toronto Stock Exchange, making it easier to attract new investors. Well Health primarily generates revenue by operating around 175 medical clinics in Canada. Meanwhile, its secondary revenue stream comes from selling health and office-management technologies to medical clinics.
The Well Health division running clinics plans to own a majority stake in the technology company. He added that the separation and public listing could occur in the first half of this year.
The healthcare technology market is substantial and growing rapidly, according to a report from Grand View Research.
The research firm stated the growth is driven by increasing demand for efficient medical services and innovations in AI, telemedicine, and patient management. In 2023, the global health tech market size reached over USD$180 billion. Furthermore, the report projects the market to expand at a compound annual growth rate (CAGR) of 17.3 per cent from 2024 to 2030.
Advancements in digital health solutions are typically behind the growth. This is especially true in managing patient data and improving healthcare delivery. The demand for AI-driven tools in healthcare continues to soar, positioning this sector for sustained expansion.
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